China announced on Friday that it will increase tariffs on American imports from 84% to 125%, marking a sharp escalation in the ongoing trade war between the world’s two largest economies. The move comes just days after President Donald Trump raised tariffs on Chinese goods to a total of 145%, even as he temporarily lifted duties for other countries.
Beijing has sharply criticized Washington’s approach, labeling it “economic bullying” and vowing to respond with firm countermeasures. A spokesperson from China’s Finance Ministry remarked that the U.S.’s tariff strategy “will become a joke in the history of the world economy” and warned that China is prepared to “fight to the end” if its interests continue to be undermined.
In response to the latest round of U.S. tariffs, China’s Commerce Ministry announced plans to file another complaint with the World Trade Organization. Markets have reacted with growing concern, fearing that the intensifying dispute could trigger a global economic downturn. While investors found some temporary relief when Trump delayed tariffs for other nations, the unresolved tensions between the U.S. and China — the world’s leading and second-largest economies — remain a major source of uncertainty.
WTO Director-General Ngozi Okonjo-Iweala warned earlier this week that the conflict could significantly harm the global economic outlook.
China’s new tariffs will impact key American exports such as soybeans, aircraft and related parts, and pharmaceuticals. Last week, Beijing also suspended imports of sorghum, poultry, and bonemeal from select U.S. companies, while tightening export controls on rare earth minerals — essential components in high-tech manufacturing.
On the other side, U.S. imports from China — including electronics like computers and smartphones, industrial machinery, and toys — are also under heavy pressure, with tariffs now reaching 145%. Consumers and businesses alike are expected to feel the impact through rising prices.
Though President Trump recently confirmed the 125% tariff hike on China, he opted not to apply an additional 20% duty related to Beijing’s role in fentanyl production.
The White House continues to argue that these import taxes will encourage domestic manufacturing and bring jobs back to the U.S., though economists warn the potential benefits may take years to appear — if they materialize at all.